Warren Stokes Debate Over Who Wields Federal Contract Bans

Sen. Elizabeth Warren is attempting to revive a debate over how the government should use its authority to suspend and debar companies from participating in federal contracts.

Warren wants the Justice Department to step up its enforcement with this tool, even if a company’s violation—say, securities fraud—isn’t related to a contract. Attorneys in the field say that suspension and debarment should be left to the agencies who hire the companies.

In a letter sent to the DOJ Aug. 11, Warren (D-Mass.) said companies engaging in “massive, years-long schemes to defraud the public are allowed to continue to do business with ...